John B. Sanfilippo & Son, Inc. (NASDAQ: JBSS) reported its financial results for the first quarter of fiscal 2027, which ended on September 24, 2026. The company announced diluted earnings per share (EPS) of $1.11 for the quarter, a decrease of 30.2% compared to the prior year's first quarter. Net sales for the period totaled $288.1 million, a decrease of $10.5 million, or 3.5%, from the same period in the prior year.
Sales volume remained flat at 90.5 million pounds. The decline in net sales was primarily driven by a 3.6% decrease in the weighted average selling price per pound. This price decrease was attributed to a shift in product mix toward lower-priced items and lower selling prices for walnuts, trail and snack mix products, and peanuts due to lower commodity acquisition costs. These decreases were partially offset by higher selling prices for pecans and almonds. Sales volume decreased across all major product types, with the exception of peanuts, walnuts, and pecans, which all experienced volume growth.
Gross profit for the quarter was $48.9 million, a decrease of $5.2 million, and the gross profit margin declined to 17.0% of net sales from 18.1% in the prior year. The decrease in gross profit was attributed to competitive pricing pressure and timing of pricing actions, as well as increased manufacturing expenses due to higher freight, equipment repairs and maintenance, and rent costs. Total operating expenses increased by $2.5 million compared to the prior year, driven by increases in professional fees, freight costs, rent expense, and compensation expense.
Management noted that the Consumer Distribution Channel experienced a 6.7% decrease in sales volume, driven by a 6.3% reduction in private brand sales volume. This decline was caused by lower nut and trail mix volumes and softness in mainstream bar sales, though it was partially offset by the launch of a new "better for you" bar offering. Conversely, the Commercial Ingredients Distribution Channel saw a 3.7% increase in sales volume, primarily due to increased sales of peanut crushing stock to peanut oil processors. The Contract Manufacturing Distribution Channel saw the largest growth, with a 41.3% increase in sales volume driven by increased snack nut sales to a significant new customer.
The company will host an investor conference call and webcast on Thursday, October 29, 2026, at 10:00 a.m. Eastern Time to discuss these results.
